Because of the political instability, what will happen to U.S. is that its Net exports would fall which by itself would decrease U.S. aggregate demand.
When the people from other countries feared for their asset, they will stop importing goods from U.S.
- This will make import reduce and also, the export from U.S. to reduce as well.
In conclusion, because of the political instability, what will happen to U.S. is that its Net exports would fall which by itself would decrease U.S. aggregate demand.
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What are your multiple choice
Answer:
In our present American free enterprise economic system:
Some people want to see pure capitalism being put in place. This means that there is no government interference with the workings of the economy. Some others, including the government, have understood that there is no perfect capitalism. As such, they call for government intervention to ensure that economic crises are not allowed free reign.
Adam Smith, as a philosopher, vehemently advocated for a free market economy without any form of government interference. He did not even support the imposition of taxes by the government. John Maynard Keynes also supported a free market economy, but he advocated for some government intervention from time to time. John Keynes stated that government must intervene during economic crises through subsidies.
Explanation:
Adam Smith elevated the economic theory of laissez-faire. He noted that the free markets needed only the invisible hand to regulate themselves by means of competition, supply and demand, and self-interest. John Keynes advocated for increased government expenditures and lowering of taxes as two important means to stimulate market demand and pull the global economy out of depression.
Answer:
Country B has a comparative advantage producing coal.
Explanation:
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Answer:
<h2>A source of money that allows individuals to pay for goods and services later is called <u>Credit</u>.An advantage of this source of money is <u>convenience of payment.</u> A disadvantage of this source of money is <u>increase in the financial debt</u>.</h2>
Explanation:
- In Economics and Finance,the concept of credit basically refers to post payment agreement in the case of any commercial exchange or purchase of any good or service between the buyer/consumer and seller.In this case,the buyer or the consumer can purchase the concerned good or service and pay for them by a specified time period in future based upon the agreement of both the buyer and seller of the concerned good or service.
- A major advantage of credit payment to the consumers or buyers is that it provides them the opportunity to pay for the goods and services that they have purchased according to their own practical convenience at a later time.The consumers or buyers can peacefully purchase any product or service without having to think much about the payment related hassles and inconveniences.This advantage of credit payment is commonly applicable for big purchases or considerably expensive purchases such as luxury or branded cars,electronic appliances,personal home or real estate and so on where various installment future payment options are provided to the consumers to ease their consumption experience.
- On the other hand,one of disadvantages of credit payment for any purchase is the potential possibility of payment default and accumulation of future financial debt or liability for the consumers and buyers.If the consumers or buyers are not able to or delay to pay the full amount of the goods or services purchased within the pre-specified time period,then it only contributes to psychological distress and deterioration of their credit history which might affect their ability for any future consumption or purchase.Credit or installment payment options also evidently lead to the accumulation of financial obligation or debt for the buyers or consumers.